Georgia’s government has submitted a €158 million loan agreement with the Asian Infrastructure Investment Bank (AIIB) to Parliament for ratification to help finance two road projects in the Kakheti region.
The funding will support construction of the 31-kilometer Badiauri–Bakurtsikhe road and the 36.6-kilometer Gurjaani–Telavi road. The World Bank will provide an equal amount of financing, with AIIB acting as a co-lender on the projects.
International tenders have already been announced for the Badiauri–Bakurtsikhe section, which has an estimated construction cost of $183 million.
The AIIB loan has a 25-year maturity, with repayment scheduled to be completed in 2051. It includes a 10-year grace period, with loan servicing set to begin in 2037.
The loan carries a variable interest rate linked to EURIBOR, which stood at 3.07% in October 2026. The final borrowing cost may change as the benchmark rate fluctuates.
The agreement also includes a one-time administration fee of 0.25% and a commitment fee of 0.25% on the undisbursed loan amount.
